City weighs cost of annexation versus benefits
City officials once again struggled over annexation Tuesday during a Building and Grounds Committee meeting. The decision to move forward, or hold off, remains undecided for a second time.
Officials milled over maps presented to them by Planning and Zoning of proposed annexation along the bypass. As requested, these maps show what it would look like to annex right of way, 100 feet from the right of way, and one lot deep.
Also requested was a cost analysis comparing what the city would gain in revenue and spend in services if it went with one lot deep. As expected, the city’s financial cost will far outweigh the financial benefits ‘ at least in the short term.
If the city annexes one lot deep along, it will have to make sewer, water, solid waste pick up, brush pick up, police services and fire services available to that area at an estimated cost of $2.7 million. In return, it is estimated the city will generate $28,766 per year.
The largest cost will be from the fire department, which reports it will need $2.5 million for a new fire station, employees and equipment. As the city grows, fire protection must also expand in order to keep the city’s current ISO 3 rating.
Taking up the majority of the $233,000 remaining financial cost will be the Water and Sewer Department. In order for the area to have sewer, a main would have to be placed at an estimated cost of $216,000.
According to Alderman Patti Nunley, if the city annexes only 100 feet from the right of way, the cost is minimal. Once that has been done, those who want to be annexed in the future can request it.
Taking this route means the city’s financial cost will be spread out over time and the Water and Sewer Department can establish a plan to extend the city’s reach with water and sewer in stages.
‘The end result will be the same if we annex along the right of way or one lot deep,’ said Alderman Billy Wood. ‘If somebody wants sewer out there, we have to get it out there to them.’
Taking one lot deep will likely open the city to another battle with property owners.
‘We’ve been there before and we know where it got us,’ said Nunley. ‘It was a mistake that I don’t think we need to be making again.’
Back in 2005, the city began de-annexation proceedings on 900 acres after a four-year battle with property owners. The thought of the situation prompted Nunley to add, ‘If these people want in, let them come on their knees and say so.’
There was a second sore topic in the city’s past brought up during the annexation discussion. Between the city’s urban growth boundary and Morrison’s growth boundary, there is commercial development not within either border.
‘I think we what we need to try and do is take all the steps we need to get in a position to extend our urban growth boundary,’ said city administrator David Rutherford.
In order to change the boundary, the current plan has to be in place three years. It has. Officials would have to go through the same process used to establish the first growth boundary ‘ a judicial process and prove the effectiveness of the plan.
Tennessee legislators passed the 1101 Growth Plan law in 1998 in an effort to curb urban sprawl and encourage local governments across the state to draft and adopt a formal growth plan for the next 20 years.
In June 2002, Warren County approved a Growth Plan after a five-year process, which included a battle between McMinnville and Morrison over disputed land annexation, and the size of their urban growth areas. The plan was finally passed within days of a July 1 deadline.
No final decisions were make when it came to moving forward with annexation or changing the city’s current growth area. If officials decide what they want to annex, their recommendation will be sent to the McMinnville Regional Planning Commission for its consideration.
Does annexation pay?
A cost estimate for other proposed areas of annexation was generated, but not presented at the meeting:
‘ Garth Circle ‘ Financial cost $46,539; Financial benefit $9,598
‘ Hoover Drive ‘ Financial cost $87,741; Financial benefit $27,084
‘ Bridge Builders Road ‘ Financial cost $237,400; Financial benefit $59,321